Displaying items by tag: Verso Paper Corp

Verso Paper Corp. has announced that it will permanently reduce its annual production capacity by 193,000 tons. This will be accomplished by the permanent shutdown of the No. 2 coated groundwood paper machine at its mill in Bucksport, Maine, effective October 23 and two supercalendered (SC) paper machines at its mill in Sartell, Minnesota, effective December 14.

The shutdown of the No. 2 paper machine at the Bucksport Mill will reduce Verso's annual coated groundwood capacity by 90,000 tons or approximately 10 percent. With an annual capacity after the shutdown of 925,000 tons, Verso will remain the second largest producer of coated groundwood paper in North America. The Bucksport Mill's workforce will be reduced by approximately 125 employees.

The shutdown of the No. 1 and No. 2 paper machines at the Sartell Mill will eliminate approximately 103,000 tons annually of SCA and SCB paper capacity. The Sartell Mill's workforce will be reduced by approximately 175 employees.

"While improved from the recent lows of 2009, demand for coated groundwood papers continues to face headwinds," said Verso President and CEO Mike Jackson. "The cost structure of the No. 2 paper machine at Bucksport, continuously rising input costs and these headwinds resulted in this decision to permanently reduce our coated groundwood capacity. This is consistent with our continuing commitment to match supply with customer demand. The demand for supercalendered papers remains fairly stable in the marketplace; however, despite our employees' diligent efforts, the cost structure of the two SC machines to be shut down at the Sartell Mill remains unfavorable.

"The decision to permanently reduce production at Bucksport and Sartell was difficult and we are mindful of the impact it will have on the affected employees and their families," Jackson added. "I want to express my sincere gratitude to the affected employees for their years of service to Verso, and to recognize all Bucksport and Sartell employees for their hard work and continued focus on safety in the workplace."

"Verso remains committed to customer service and delivery of high-quality paper products, and we will work closely with our customers to make the necessary transitions as seamlessly as possible," said Mike Weinhold, Verso Senior Vice President of Sales, Marketing and Product Development.

The paper machine shutdowns will result in an aggregate pre-tax charge to earnings of approximately $22 million, which is expected to occur primarily in the fourth quarter of 2011. This includes approximately $13 million for severance and benefit costs; approximately $7 million in non-cash charges related to the accelerated depreciation of property and equipment over a reduced remaining useful life and the write-off of related spare parts; and approximately $2 million related to other costs. The severance and other shutdown costs require the outlay of cash, which is expected to occur primarily in the fourth quarter of 2011.

Costs associated with shutdown activities are based on currently available information and reflect management's best estimates; accordingly, actual cash costs and non-cash charges and their timing may differ from the projections stated above.

Source: Verso Paper Corp.

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Verso Paper Corp. has announced that its indirect subsidiaries, Verso Paper Holdings LLC and Verso Paper Inc. (collectively, the "Issuers"), have extended the time and date of the expiration of their offer (the "Exchange Offer") to exchange up to $396,000,000 aggregate principal amount of the Issuers' 8.75% Second Priority Senior Secured Notes due 2019 that have been registered under the Securities Act of 1933 (the "Exchange Notes") for a like principal amount of the Issuers' outstanding 8.75% Second Priority Senior Secured Notes due 2019 (the "Old Notes") to 5:00 p.m., New York City time, on Thursday, August 4, 2011 (the "Expiration Date"), unless further extended. The Exchange Offer had been scheduled to expire at 5:00 p.m., New York City time, on Monday, August 1, 2011.


The terms of the Exchange Notes to be issued in the Exchange Offer are substantially identical to those of the Old Notes, except that the Exchange Notes are freely tradable by persons other than affiliates. Except for the new Expiration Date, all other terms, provisions and conditions of the exchange offer that are described in the Issuers' Registration Statement on Form S-4 declared effective by the Securities and Exchange Commission on June 30, 2011, will remain in full force and effect.


As of 5:00 p.m., New York City time, on August 1, 2011, the Issuers have been advised that holders of $395,248,000 aggregate principal amount of the Old Notes have tendered their Old Notes for exchange. The amount tendered represents approximately 99.8% of the outstanding Old Notes. Tendered Old Notes may be withdrawn at any time prior to the Expiration Date.


This press release is not an offer to exchange Exchange Notes for Old Notes, which the Issuers are making only through a prospectus. Copies of the prospectus and related documents may be obtained from Wilmington Trust Company, the exchange agent for the Exchange Offer, c/o Wilmington Trust Company, Corporate Capital Markets, 1100 North Market Street, Wilmington, Delaware 19890-1615.

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Verso Paper Corp. has announced that it will report its financial results for the second quarter ended June 30, 2011, in a news release before the market opens on Thursday, August 11, 2011. Management will host a conference call at 9:00 a.m. Eastern Time on Thursday, August 11, 2011, to discuss the second quarter results.

 

This release and the second quarter results will be made available on Verso's website at www.versopaper.com/investorrelations by navigating to the Financial Information page.

 

Analysts and investors may participate in the live conference call by dialing 719-457-2705 or, within the U.S. and Canada only, 888-481-2845, access code 4576177. To register, please dial in 10 minutes before the conference call begins. The conference call and presentation materials can be accessed on Verso's website at www.versopaper.com/investorrelations by navigating to the Events page, or at http://investor.versopaper.com/eventdetail.cfm?eventid=99890.

 

A telephonic replay of the call can be accessed at 719-457-0820 or, within the U.S. and Canada only, 888-203-1112, access code 4576177. This replay will be available starting at 12:00 p.m. Eastern Time on Thursday, August 11, 2011, and will remain available for 14 days.

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Verso Paper Corp. has announced its participation in a partnership with Time Inc., Hearst Enterprises, National Geographic, the Sustainable Forestry Initiative® (SFI®), and other forest products companies in Maine to promote sustainable forest management principles and initiatives.

 

"Verso and its partners are to be congratulated for building on the Maine pilot to expand the partnership and increase the amount of lands certified to the SFI Standard," said SFI President and CEO, Kathy Abusow. This partnership is an extension of a pilot project completed last year in Maine that provided support to private landowners by creating a more cost effective certification process and offering resources to support responsible forest management practices. Last year's pilot project resulted in an additional 620,000 acres certified to the SFI and the American Tree Farm System® standards in Maine, an 8.3% increase. This year's partnership effort will use the experience learned from the pilot project and involve a new group of landowners who recognized the value in the improved and thorough process that came out of last year's pilot. This new partnership effort is expected to result in over 600,000 additional acres becoming certified under the SFI Standard. Importantly, the project will meet the needs of small and medium-sized landowners by further validating a more cost effective certification process and providing resources to support forest management best practices.

 

"Verso has strategically taken a leadership role over the years to promote forest certification by developing partnerships and providing support to a variety of stakeholders with similar values," said Craig Liska, Vice President of Sustainability for Verso. Last year's pilot project and this year's extension have resulted in a growing number of landowners showing interest in this improved certification process. Verso believes the increased awareness and understanding of the value this new certification process offers will prompt others to join the effort and promote further growth of the program in Maine and other states.

 

"Verso is very excited about this latest partnership and looks forward to seeing the increase in certified acreage in Maine along with the sustainable forest management practices that accompany this certification effort," continued Mr. Liska. "As a manufacturer and marketer of paper products, Verso recognizes and embraces our responsibility to support healthy, viable forests as a renewable resource for generations to come."

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Verso's net sales for the first quarter of 2011 increased $53.0 million, or 14.6%, as the average sales price for all of our products increased 13.3% compared to the first quarter of 2010 and increased 2.5% compared to the fourth quarter of 2010. The improvement in our average sales price reflects price increases that went into effect during 2010. We announced additional price increases for our core products of $40 per ton effective April 1, 2011. Verso's gross margin was 15.4% for the first quarter of 2011 compared to 7.4% for the same period in 2010 and 17.2% for the fourth quarter of 2010. Sales volume was stable on both a sequential quarter basis and year over year.


Verso reported a net loss of $44.6 million in the first quarter of 2011, or $0.84 per diluted share, which included $26.5 million of charges from special items, or $0.50 per diluted share, primarily due to $26.1 million in pre-tax net losses related to the early retirement of debt in connection with our debt refinancing. Verso had a net loss of $53.6 million, or $1.02 per diluted share, in the first quarter of 2010, which included $1.6 million of charges from special items, or $0.03 per diluted share, primarily due to costs associated with new product development.


"Our first quarter adjusted EBITDA results improved $34 million compared to the first quarter of 2010. Normally, the first and second quarters are seasonally slow quarters for coated papers, so we view our first quarter results as very positive," said Mike Jackson, President and Chief Executive Officer of Verso. "Prices continued to improve in the first quarter, consistent with our expectations. We also announced a price increase of $40 per ton, effective April 1 for all of our core products.


"All of our announced energy projects are on schedule, and, as previously mentioned, we expect a positive EBITDA impact of $50 million per year, beginning in the fourth quarter of 2012.


"During the quarter, we also focused on our capital structure by refinancing our second priority senior secured notes due 2014 and a portion of our first priority senior secured notes due 2014 with new second priority senior secured notes, which extended our maturity date to 2019 and reduced our interest expense."


Follow the link below to download the full report.

 

Source: Verso Paper Corp.

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Verso Paper Corp. has announced that it will report its financial results for the first quarter ended March 31, 2011, in a news release before the market opens on Monday, May 9, 2011. Management will host a conference call at 9:00 a.m. Eastern Time on Monday, May 9, 2011, to discuss the first quarter results.


This release and the first quarter results will be made available on Verso's website at www.versopaper.com/investorrelations by navigating to the Financial Information page.

Analysts and investors may participate in the live conference call by dialing 001-719-325-2365 or, within the U.S. and Canada only, 877-440-5785, access code 8033903. To register, please dial in 10 minutes before the conference call begins. The conference call and presentation materials can be accessed on Verso's website at www.versopaper.com/investorrelations by navigating to the Events page, or at http://investor.versopaper.com/eventdetail.cfm?eventid=95561.


A telephonic replay of the call can be accessed at 719-457-0820 or, within the U.S. and Canada only, 888-203-1112, access code 8033903. This replay will be available starting at 12:00 p.m. Eastern Time on Monday, May 9, 2011, and will remain available for 14 days.

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Verso Paper Corp has announced that Mike Jackson, President and Chief Executive Officer, was named the 2011 Executive of the Year by TAPPI and PIMA. This award is PIMA's highest honor and is bestowed on senior-level executives in the pulp, paper or converting industries for excellence in management and outstanding contributions to the industry as a whole.

 

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"During his career, Mike Jackson has continually exemplified the strong leadership skills and vision required for success in a globally competitive business like the pulp and paper industry," notes Ray Heuchling, PIMA Executive Council Chair. "His accomplishments as a leader and his many contributions to the industry make him an outstanding choice for Executive of the Year."


Jackson joined Verso Paper Corp. as Chief Executive in November 2006. Under his leadership, Verso became a publically traded company in less than two years. Before joining Verso, Jackson spent 29 years with Weyerhaeuser Company, where he most recently served as Senior Vice President of Cellulose Fibers, Bleached Board and Chairman of NORPAC, a joint venture with Nippon Paper, prior to his retirement from the company. During his tenure with Weyerhaeuser, Jackson received two Presidents' Awards for outstanding performance in businesses for which he was responsible.


During his career at Weyerhaeuser Jackson served in a series of senior-level management positions including: Senior Vice President of Cellulose Fibers and White Papers (2004 to 2006), Vice President of White Papers (2002 to 2004), Vice President of Business Papers (2000 to 2002), Vice President of Recycling (1998 to 2000), and Vice President of Quality and Human Resources, Containerboard Packaging (1993 to 1998). Prior to that, he served as General Manager of various packaging facilities.


In 2009, the Association of Suppliers to the Paper Industry (ASPI) chose Jackson as its Customer Executive of the Year, in recognition of outstanding contributions to the pulp and paper industry. Jackson is currently on the board of directors of SupplyOne, Inc. and the American Forest and Paper Association (AF&PA). He is Co-Chair of the AF&PA Political Action Committee and served as Past Co-Chair of AF&PA's Printing-Writing Paper Group and its executive committee, as well as Past Chair of AF&PA's Recycling Committee. Jackson is also a past board member of the Electronic Documents Systems Foundation (EDSF).

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Verso Paper Corp. has announced that Michael A. Jackson, President and Chief Executive Officer, will be providing a company overview to investors at the Goldman Sachs 2011 Paper and Forest Products Investor Event on Thursday, March 17, 2011 at 10:00 a.m. Eastern Time in Montreal, Quebec, Canada.


A copy of the company's presentation materials will be available following the conference at www.versopaper.com/investorrelations on the Events page.


Forward-Looking Statements

In this press release all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "intend," and similar expressions. Forward-looking statements are based on currently available business, economic, financial and other information and reflect management's current beliefs, expectations and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. For a discussion of such risks and uncertainties, please refer to Verso's filings with the Securities and Exchange Commission. Verso assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.

Source: Verso Paper Corp.

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Verso Paper Corp. (NYSE: VRS) today announced that it will report its financial results for the fourth quarter ended December 31, 2010, and year-end results in a news release before the market opens on Thursday, March 3. Management will host a conference call at 9:00 a.m. Eastern Time, Thursday, March 3, 2011, to discuss the fourth quarter and year-end results.


This release and the fourth quarter and year-end results will be made available on Verso's website at www.versopaper.com/investorrelations by navigating to the Financial Information page.

 

Analysts and investors may participate in the live conference call by dialing 719-325-4810 or, within the U.S. and Canada only, 877-795-3635, access code 6098038. To register, please dial in 10 minutes before the conference call begins. The conference call and presentation materials can be accessed on Verso's website at www.versopaper.com/investorrelations by navigating to the Events page, or at http://www.videonewswire.com/event.asp?id=92194.


A telephonic replay of the call can be accessed at 719-457-0820 or, within the U.S. and Canada only, 888-203-1112, access code 6098038. This replay will be available starting at 12:00 p.m. Eastern Time on March 3, 2011, and will remain available for 14 days.

 

Source: Verso Paper Corp.

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Thursday, 03 February 2011 15:51

Verso Paper Corp. Achieves Safety Milestone

Verso Paper Corp. has announced that it exceeded the company's safety goals for 2010 with a lost workday incidence rate (LWIR) of 0.07, which is world class performance, and a total incidence rate (TIR) of 1.36. These outstanding results place Verso at the top of the first quartile for safety performance among paper industry peers, according to the American Forest and Paper Association's most recent Benchmarking Survey.


"Verso is proud of our industry-leading safety performance and that our 2010 TIR and LWIR performance was the best in Verso's history," says David Sams, Verso's Director of Environment, Health and Safety. "More importantly, we are proud that our people are working more safely. We are moving closer to an environment where no one gets hurt at work. Verso's ultimate goal is zero injuries."


Verso's path to top quartile safety performance is the result of a carefully developed strategy that engages every employee in the spirit of ownership for safety through Advanced Safety Leadership Forums. Employees and teams at all levels in the organization are challenged to look beyond the norm to identify what's possible to achieve safety excellence. Once targeted opportunities are identified, safety leaders develop action plans to close the gaps and rally their teams to improve performance.


Verso has been recognized by the Occupational Safety and Health Administration (OSHA) for its participation in the Voluntary Protection Program (VPP). Three of Verso's four manufacturing facilities have achieved Star status in VPP, and the fourth facility continues to work on opportunities that will prepare it for VPP recognition. Less than 1% of the nation's facilities have achieved OSHA Star status.

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